Tag: internal revenue service

Missed the April Tax Deadline 2022?

Tax season is here again, and if you’ve missed the April Tax deadline 2022, you have some important decisions to make. First thing’s first: what should you do if you missed the April 15th Tax Deadline? You can do three things.

April 18 was the deadline to file your tax return. If you missed the filing deadline and need more time, we can help. Apply for an extension of time to file your return by April 18. Depending on your situation, you don’t have to pay any additional taxes due by doing this. The extension gives you until Oct. 15 to file and pay taxes without penalty or interest charges.

April Tax Deadline 2022
April Tax Deadline 2022

Tax Deadline

Tax laws are complex, and filing late can lead to costly mistakes. This year, there’s still time to discharge your taxes if you missed the April deadline by filing an extension. April is the best month for tax extensions. If you owe interest or penalties skip straight over to the payment instructions and find out how to pay now and avoid late fees, penalties, and interest charges. For details on other extensions, see below…

Don’t stress. You have options if you missed the April tax deadline. If you’re looking for resources to help, visit IRS.gov, or call 800-829-1040.

Penalties and Interest

If you’ve filed your taxes late, you should send a payment as soon as possible to avoid penalties and interest. The IRS accepts many forms of payment, including by check or money order, online payment via debit or credit card, and even payment by phone with a credit or debit card. No matter which method you choose, it’s important to include a cover letter with your name, social security number and the exact amount you are paying.

Extra Time To File

Because of recent major disasters declared by the President, taxpayers who have been affected by these events have extra time to file their tax returns and pay any taxes due. This includes some disaster victims, taxpayers living overseas, certain military service members and eligible support personnel in combat zones.

The Department of Defense offers Military OneSource® members a free tax resource through MilTax. Eligible MilTax users can file their federal and up to three state income tax returns for free. MilTax is easy to use, accessible from any computer with internet access, and takes only about 20 minutes.

Turbo Tax Advice New Filers Can Use From Intuit

Turbo Tax Advice

When I filed my taxes for the first time, I didn’t have Turbotax or any other program to help me out, no Turbo Tax Advice. It was a very intimidating and scary process for me and I was constantly worried about messing up and having to pay a penalty to IRS. Filing for taxes is an easy job if you are aware of what you need to do. The following are some of the tips and 2015 Tax Advice that you can use as a first time tax filer:

The first thing that you need to do is to organize all your files and documents. Have all these stored in one place, be it the forms, the receipts or other kinds of relevant documentation. By doing this you will be able to save a lot of time and also make the whole process more easy and convenient. Next, you should also check whether you qualify to file for free or not. If you have a W-2 along with very little bank interest then you would qualify.

Also, do not forget about filing for your state taxes with TurboTax 2015. When you have a tax filing program like TurboTax, you would be able to file for state taxes and federal taxes easily because all your information can be transferred automatically. Another top tip to keep in mind would be to file online using Turbo Tax Advice instead of doing the process manually because the latter is a time consuming process and the scope for errors is also higher.

Government Report Shows Former IRS Employees Still Accessing Taxpayer Data

According to a recent Government Accountability Office report, the IRS continues to leave its vast computer systems without proper security. Private taxpayer data is vulnerable to hackers, fraudsters and former IRS employees. This GAO report tells of significant deficiencies relating to the financial reporting systems. Millions of Americans are rightfully concerned because they are required by law to file tax returns but worry about fraud.

The IRS must continue making improvements to taxpayer financial data controls. This news comes in the wake of a very unpleasant six weeks for taxpayers and the IRS. Taxpayers have entered this filing season with greater fears over fraud. TurboTax recently announced it was suspending tax return filings due to fraud.

Taxpayer distress became more severe when some learned that their tax return had been filed by someone else who received their refund. At first, it did not involve federal taxes, only state returns. The FBI began investigating returns filed using TurboTax. Those interviewed about this spoke of data being compromised and returns may have been filed on the basis of 2013 returns.

IRS Employees
GAO Office

The report tells of easily compromised IRS passwords and outdated software having improper security functions. Worse yet, at times the IRS fails to delete access for employees who quit or have been fired.

Additionally, former employees of the IRS retain access to its data system when they should have been immediately cut off. A co-author of the report says that there is a plethora of taxpayer data that remains at risk for identity theft.

Taxpayers have no confidence in the credibility and security of the IRS especially after the Treasury Inspector General for Tax Administration stated that 1.6 million taxpayers had been affected by identity theft early in 2014. It was a fraction of that four years before. Electronic filing likely plays a role.

The GAO warns that gaining access to IRS files does not require much sophistication on the part of hackers. At the same time, it reports that some security weaknesses have been addressed, but more improvements must be made.

Maximize Your Refund With TurboTax

If you are using TurboTax 2015 to Maximize Your Refund while filing, the software can save you a lot of time by transferring last year’s information into the current year, explains Frank Ellis, a tax specialist.

In an article in the Traverse City based Tax Preparation Examiner, Ellis explains in detail how users can simply use last year’s information and then submit their return to the IRS with the up to date information.

Users are also able to use TurboTax 2015 to get the largest possible refund, and Ellis tells you how to do this by explaining how to access many of last year’s details and entries that have been saved on your computer.

This saves time as you do not need to retype much of your information, and also ensures more accuracy. The convenience of TurboTax 2015 doesn’t stop there; the software also allows you to transfer important and relevant information from other files.

Maximize Your Refund
Photo by JeepersMedia

The fact that TurboTax 2015 looks for important documents and enters financial details automatically is one of the biggest appeals for most users filing their 2014 taxes. The software is designed to make the filing process as easy as possible, and to maximize the refund amount.

Ellis also points out the security and safety of the software – two things important to anyone dealing with personal financial information. Also pointed out are those all important little known deductions and credits, the many innovative tools of TurboTax 2015, and any important deadlines for filing.

Using a tax refund calculator is highly recommended during the entire process, to give users a fairly accurate idea of how much refund to expect. The entire tax filing process is easier and goes much more smoothly when you are able to make any necessary adjustments, based on your estimates of any tax refund.

Many users like to have some idea of their refund amount during the filing process, and the tax refund calculator allows you to be informed every step of the way. You can prepare more efficiently for the financial year when you are able to estimate the amount of your tax refund in advance.

Bitcoins Ruled As Taxable Property by the IRS

The US Government has recognized Bitcoins which is good in a way but at the same time they have decided to view them as property, making them taxable. If they had decided that the virtual currency actually was a currency then a tax could not be placed on them when they gain in value. Some view this as making the currency legitimate, and a good thing.

Bitcoin Magazine
Bitcoin Magazine (Photo credit: zcopley)

The fact that they can now be taxed reduces the interest for some who see the risk in the fluctuations in value and don’t want to take on the additional tax risk. Spending them would trigger the taxation while holding onto the property would not create a taxable situation. An odd part of the IRS decision is that miners would need to count their Bitcoins as income.

Stability in the marketplace is what many hope for with a couple exchanges having financial trouble in recent months. This decision by the government should increase stability.

It will be interesting to see if there’s a form to claim Bitcoin income in the future or if exchanges will need to issue 1099 tax forms to miners at the end of each year.